Don’t let climate change foil your investment portfolio!
Investment always comes with a risk. Whether big or small, risks are inevitable and investors are expert at calculating these risks. In an effort to make the best decisions, investors are constantly analyzing the economies and state of global affairs for unexpected economic challenges.
While climate change is easily accepted as a significant risk, it is often misunderstood by the financial community. Climate change introduces new kinds of risks but identifying these risks can be a difficult task, leading to common misconception and some myths.
Luckily there is a tool to help financial experts and investors dispel common myths. Developed by WRI and the UNEP Finance Initiative, the Carbon Asset Risk Discussion Framework was created to help the finance sector identify and understand the climate-related risks to their portfolios. They worked with over 150 participants in finance sector, as well as experts on energy and climate in order to create a report that can dispel climate change investment myths and provides guidance for professionals evaluating their exposure to non-physical risks of climate change.
(Image via Pixabay)